Cash from equity without giving up a good first mortgage: second lien or cash-out refinance
Lien order
The short version
Liens are repaid in order if a home is sold or foreclosed: the first mortgage, then any second lien. Because a second lien is paid later, lenders usually charge more for it. If you later refinance the first mortgage, the second lien holder may need to agree to stay in second position, called subordination.
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Subordination
Ask your second lien lender how it handles subordination requests and any fee before you sign.
Lien questions
What is subordination?
An agreement by a second lien holder to remain behind a new first mortgage when you refinance.